Warning: Following my trades may be hazardous to your financial health. See Disclaimer.

Tuesday, April 10, 2012

TVIX, VXX - Pit Stops

I'm all out of TVIX shares, so chances are I won't get to reload.  But today's close at 9.68 should be a pit stop as it is the 50% retracement since the breakdown from the horizontal support around the 14 area. It is also encountering a major moving average (20 EMA of 9.88)  for the first time in recent weeks.  Finally, it is at the major gap fill resistance of 9.70.

The 60 minute chart is overbought with STO at 92 and RSI at 77.28.  But the good news (bad news for me) is that the ADX is at a hefty level of 32; therefore, the overbought conditions can be more or less overlooked.  Personally, I like the VXX chart a bit better.  But it is similarly at a mathematical pit stop as of the close today.

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